E-Mail-Fundraising is one of the most effective tools for NGOs—both for donor engagement and for raising funds. A study by Sonja Harken, Vanessa Mertins, and Michael Urselmann (2023) focused on the factors that make email marketing for nonprofit organizations successful. An empirical study was conducted in the German-speaking region to close theoretical gaps and provide practical recommendations.
The Importance of Email Marketing in Fundraising
Email marketing is a versatile tool that NPOs can use to maintain relationships with donors, attract new supporters, and increase revenue. Despite the multitude of digital channels, email marketing remains a standout method due to its control over content creation and distribution. According to studies by Reichenbach (2020)
email marketing has the greatest impact on the success of online fundraising activities.
Measuring the Success of Email Marketing
The success of email marketing in this study was measured through a specific success index model. The model considers both economic goals (e.g., revenue growth) and non-economic goals (e.g., image improvement).
The study includes potential goals for measuring success such as:
- Image improvement,
- Lead generation,
- Conversions to recurring and repeat donations,
- Improvement in donor satisfaction,
- Acquisition of new donors,
- Growth of funds raised through email fundraising,
- Cost-efficiency of email fundraising, and
- Increase in the number of email subscribers.
To objectively evaluate success, surveys were conducted among NPO employees responsible for email marketing.
Identified Success Factors
The study identified nine potential success factors. Seven of these factors were confirmed to be significant for the success of email fundraising:
- Individualized Donor/Relationship Orientation: This factor had the greatest impact on success. Personalized messaging and content tailored to the interests of the recipients are crucial.
- Communication Tools and Lead Generation: The use of strategies to attract new subscribers and increase reach also shows a high impact.
- Content Quality: Relevant, engaging content that provides value to recipients is of high importance.
- Organizational Framework: This includes clear responsibilities, short decision-making paths, and adequate personnel and financial resources.
- Conversion Focus: Integrating clear calls to action and optimized landing pages promotes the conversion of recipients into donors.
- Technical Implementation: Professional presentation and responsive design ensure a better user experience.
- Trust Building: The use of trust-building measures such as a reputable sender and clear data protection information is also critical.
Recommendations Based on the Importance-Performance Map Analysis
One of the most important findings of the study was the need for an Importance-Performance Map Analysis (IPMA) to set priorities for improvement measures. This analysis highlighted which actions have the greatest leverage on success:
Individualized Data Management
Integrated data management is the foundation for effective personalization and should be prioritized for improvement. Better data management is necessary for successful personalization. To tailor content effectively, the technical analysis of interests and preferences should be expanded.
Donor Journey Management
The systematic design and automation of the donor journey proved to be a key area with great potential. While improvements in this area are not easy to implement, they are promising. Marketing automation is required for this, which may be complex during initial implementation but becomes easier to maintain over time.
Content Relevance
Content should be specifically tailored to the needs of recipients. Analyses, surveys, and A/B tests help identify relevant content. Click and open rates also provide insights into content relevance. Since not all recipients share the same interests, content should be personalized. This can be done based on past donations for specific projects, for example.
Partnerships
Collaborating with partners, such as joint campaigns or co-registrations, proved to be an effective method for increasing reach. Measures like integrating an email signup link in employee email signatures can also be an effective way to increase reach.
Co-registration, meaning simultaneous signup for both the partner’s and the NGO’s newsletter, can have negative effects as well: it may generate leads with limited interest in the NGO and its work. However, partnerships can also include mutual promotion in newsletters and other publications. The study shows that mentions in partner newsletters can have a significant impact.
Further Practical Implications for NPOs
The study highlights that investments in the areas mentioned above have a substantial impact on the success of email fundraising. Additional practical tips mentioned in the study include:
Clear Layout
Since the average time recipients spend on branded emails is only 10 seconds (Litmus, 2021), the layout should be adapted accordingly. A clear structure with headings, subheadings, and bolding of key sentences and words helps make the content scannable.
Images in Emails
Images are essential for appealing content visualization. However, whether they are recommended for email fundraising remains unclear. Older studies show that emails with many images have a higher click-through rate (Lewis et al., 2013). However, a recent experiment with two versions of an email found that the text-only version had a nearly 29% better response rate than the version with images (NextAfter LLC & Salesforce.org LLC, 2021).
Mobile Optimization
Since 87% of Germans, 91% of Austrians, and 98% of Swiss people now use mobile internet (Eurostat, 2023), mobile optimization of emails has become crucial. Emails must be displayed correctly on smaller devices. Most standard email marketing tools handle this automatically.
More Personalization, More Automation, and More Cooperation
In summary, the study emphasizes three main aspects: personalization, automation, and cooperation. It is becoming increasingly important to move away from one-size-fits-all emails and create highly individualized content. This requires data and marketing automation. Partnerships in the field of email marketing also offer numerous advantages that are still underutilized by NGOs.
Here is the full study: Online fundraising for NPOs via email marketing – A critical success factors analysis in Germany, Austria, and Switzerland
